#Canada #Calgary #Enbridge #Permian Basin #Salt Creek Midstream

Enbridge Expands Its Presence in the Permian Basin

Enbridge Inc. has taken a significant step in enhancing its position in the oil industry by acquiring Salt Creek Midstream's crude gathering business. This acquisition represents an investment of $600 million and aims to bolster Enbridge's operational capabilities in the prolific Delaware Basin, a vital area for crude oil production in North America.

The deal, made through a wholly-owned subsidiary, grants Enbridge ownership of the Orla and Wink North pipeline systems in their entirety, along with a 50% stake in the Delaware Crossing (DCX) system. Collectively, these systems span approximately 500 miles of infrastructure crucial for transporting crude oil. They enable Enbridge to serve a diverse clientele of over 20 producers, backed by dedicated assets across around 320,000 acres. Such a robust foundation and a ten-year average remaining contract life ensure stable cash flows and ample room for future expansion.

The added capacity from the Orla, Wink North, and DCX systems reaches a throughput capacity of 420,000 barrels per day, with storage capabilities of 350,000 barrels. This setup allows Enbridge to tap into various long-haul pipelines in the region, including its own Gray Oak Pipeline, further enhancing the value chain in the Permian Basin. With this acquisition, Enbridge can now provide customers seamless integration from wellhead to export via its infrastructure, including the Enbridge Ingleside Energy Center, the largest crude export terminal in North America.

Colin Gruending, Executive Vice President at Enbridge Liquids Pipelines, remarked on the strategic importance of this acquisition, noting that it extends the company's footprint deeper into the Permian Basin. The acquisition not only enhances operational connectivity but also fortifies Enbridge's strategic value chain, allowing them to offer comprehensive services to their clients.

The company's anticipated transaction benefits include immediate accretion to both distributable cash flow per share and earnings per share. Enbridge assures its investors that its financial guidance for 2026 remains unchanged post-acquisition, reflecting confidence in the strategic move.

The transaction is expected to be finalized by the end of 2026, pending customary closing conditions, including approval from the Federal Trade Commission under antitrust regulations. Enbridge's financial advisory for this transaction was managed by RBC Capital Markets, with legal support from Sidley Austin LLP and Sullivan & Cromwell LLP.

About Enbridge Inc.
Enbridge is dedicated to providing essential energy resources to millions across North America and abroad. With operations spanning traditional oil and gas networks to renewable energy and technology development, Enbridge focuses on delivering secure and sustainable energy solutions. Its commitment to innovation includes advancements in hydrogen and renewable natural gas technology, further establishing the company's role in the future energy landscape.

As Enbridge continues to expand its operations, this strategic acquisition marks a significant step in ensuring stable energy supply and service excellence in the ever-evolving energy sector.